Scale Project: Agriculture

Scale Project: Agriculture

Introduction

Great subject matter for the scale project. You are looking at a vital life support system provided by humans (food production) that displaces and degrades vital life support functions provided by nature (ecosystem services). Food production fits within the market paradigm, but the services it displaces generally do not.

Need to discuss the history of scale in agriculture. Has it always been an issue? What has made it emerge as an issue?

This is a particularly interesting but complex problem, with multiple facets. There is the issue of scale of agriculture at a global level, where mono-crop food production has displaced highly diverse ecosystems. Obviously, growing populations need food, but could easily be sustained by eating lower on the trophic chain—i.e. less meat. What percentage of grain in the US is raised strictly for animal feed? This is an interesting issue, because excessive consumption of food in general and animal products in particular causes serious health problems. If you remember the figure in chapter two of the book, marginal utility approaches zero (the futility point, I think we called it). Obesity and other health problems may mean that the marginal utility of more consumption is actual negative. It is however a case of a social trap -- gratification from food is immediate, while the negative impacts occur in the future (Bob Costanza has an article on social traps. We have a copy at the Institute if you want). Robert Goodland has also written on the topic of agriculture from an ecological economics perspective. If you can’t find the reference, I’ll try and dig it up.

Another very interesting issue is the energy inputs into agriculture. We put more calories of hydrocarbons into food production than we take out in carbohydrates. This is a bizarre use of non-renewable resources. David Pimentel has written on this. I think you can find some of his articles on-line. There is a reference in the text to one of his articles that make this point.

There is also the issue of scale at the local level, where any negative impacts of agriculture are most immediately felt. Most of the issues you are addressing sound like they focus on the local level. Trade probably plays an important role in excessive scale at the local level for exporting regions, but may help avoid excessive scale around urban areas.

You will need to make a clear distinction between economies of scale and the scale concept. My guess is that full cost accounting would erase any economies of scale.

Social/ethical perspective

Not enough information here to make any comments relevant to what you have written. Are you planning to address issues such as preserving the agrarian lifestyle? Certainly one of the greatest philosophers in this area is Wendell Berry (sp?). He writes extensively on the agrarian ethic, and argues that society as a whole has much to learn from small scale agriculture and what he calls the agrarian ethic. This ethic is destroyed by large scale farming. He would be a good starting point for your research.

If your group is going to tackle the issue of scale in agriculture at a global level, you will also have to address the serious ethical issue of population growth. Desirable scale in agriculture will depend on the total population.

Global relations to American agriculture

Again, too little to really go on. Something relevant to the ethical issue here is public law 480. PL 480 provides food to underdeveloped countries at a low cost, but was conceived of as a way to make other countries dependent on the US. Earl Butz and Hubert Humphrey have some classic quotes related to this, but it is tangential to scale.

One scale issue related to international agriculture is the import of animal feeds. For example, Brazil consolidated small scale holdings in the south to create agroindustrial farms that produce soybeans for export to Europe. Many of the small farmers and sharecroppers displaced by this scheme moved to Amazon, where they have contributed substantially to deforestation.

I need more detail to make any useful comments, though I think the subject matter has considerable potential.

Cortnie

There is substantial literature showing that productivity per hectare declines with the number of hectares under cultivation, and I would bet that inputs of non-renewable resources increases.

Comments on introduction relevant here. Also look at Wendell Berry.

Economic piece

Important issues here include the implications of highly inelastic demand and inelastic supply in the short run. Should the scale of an industry as critically important as agriculture be determined by market forces?

An important piece of the economic puzzle in agriculture is subsidies. How do subsidies affect the scale issue?

Market concentration is also important. When there are is only buyer of a product, it is called monopsony. While there is more than one buyer of agricultural products, there aren’t many, and there does at times appear to be some degree of collusion in price setting. Price fluctuations to farmers are rarely reflected in prices to consumers.